The Australian Communications and Media Authority found this breached a new code of conduct because listeners would not have known it was an advertisement. The song was immediately preceded by a station promo and was followed by two songs.

The ACMA acknowledged that the breach was not intentional and caused by a technical error because a pre-recorded announcement failed to play. However, the rules do not provide exemptions in the case of technical difficulties.

The owner of 5DN, Australian Radio Network, has since upgraded its software to prevent recurrence. Chief operating officer Geraint Davies said he was satisfied with the outcome of the ACMA's investigation.

"I think it was thoroughly investigated and other than a technical studio error ... I think the findings were solid." The station has not been penalised.

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This was the first breach of the new rules since it was introduced last May.

"Long-form musical advertisements like this are a relatively new innovation in radio advertising," ACMA chairman, Chris Chapman, said.

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"During the investigation, the ACMA remained conscious of the need to balance the regulatory requirements for advertising with industry's drive for innovation and competition in radio advertising."

The ACMA found the 2012 version of Down Down was a promotion for Coles because of the slogan "down down prices are down", reference to Coles and mention of the "big red hand" that forms part of Cole's advertising campaign.

The regulator decided a normal listener would not be able to distinguish the advertisement from normal programming because it had the same length and characteristics as the "classic hit" songs played immediately after it.

The ACMA concluded that the licensee breached the code of practice by broadcasting the advertisement without distinguishing it appropriately.

The ACMA also investigated the broadcast of the same advertisement on the same day by ARN's other Classic Hits stations, but found these radio stations did not breach the code because they "distinguished the advertisement from the surrounding 'classic hits' by broadcasting announcements that clearly connected the 2012 version of Down Down to Coles Supermarkets."

The ABC's Media Watch program aired similar concerns about radio stations playing the Coles version of Down Down as full-length songs on August 6 last year, a few days before the ACMA receive a written complaint.